Joan Burton (Dublin West, Labour)
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135. To ask the Minister for Finance the number of credit unions operating under lending restrictions; the number of credit unions with restrictions on lending to persons; the aggregate monthly lending in bands of €10,000; and if he will make a statement on the matter. [51475/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I have been informed by the Central Bank that in February 2015 a lending restriction review initiative was commenced, whereby credit unions subject to a lending restriction that are satisfied they have made the necessary improvements and have embedded these improvements in robust risk sensitive lending practices, could apply for a review of their lending restriction. The closing date for receipt of applications to review lending restrictions under this initiative was 30 September 2015. 

The individual credit union lending restrictions in place are reviewed on a regular basis to determine whether they are still set at appropriate levels. The Central Bank has advised me that 20% of active credit unions (55 in total) are currently operating under lending restrictions compared with 52% of active credit unions at the start of the review process. 10 of the 55 credit unions have a monthly maximum lending restriction and 53 of the 55 credit unions have a maximum individual loan size restriction.  In the majority of the relevant cases, the maximum individual loan size is in excess of €10,000 as detailed in the table below.

Lending restrictions in credit unions are a matter for the Registrar of Credit Unions at the Central Bank, who, as the independent regulator for credit unions, acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.